Lower Minimum Payments Keep Credit Card Users on the Hook Longer

Newhouse News ^ | TERESA DIXON MURRAY

[SpyderTim]

I also regret that my terminology and choice of words to describe my viewpoint isn't better. I've described it as best I can without getting into too many details.

[tdadams]

Then when I get one of those 0% for six months deals, I transfer the balance and pay it off at $200 or #300 a month.

I've got a better idea. Just don't use credit. Save up and pay cash. A lot of times, when you have to save up for something it gives you time to ponder whether you really need that item or if your money wouldn't be better off going into a mutual fund for your retirement. The instant gratification that comes with a credit card will always compel you to "buy it now."

I gave up using credit 4 or 5 years ago. My quality of life has gone up exponentially. There's something about being responsible with money that leads you to be even more responsible and even parsimonious.

People who say they can't make it without credit haven't tried hard enough. Two years ago, I saved up and paid cash for a car. And I don't have a six figure income.

[tdadams]

If you are going to die without assets, why not die with credit card debt. It's a transfer of wealth from credit card companies to yourself or your kids.

And you see nothing unethical about that? What you call a "transfer of wealth" I would call fraud!

[Destructor]

Credit debt is the modern equivalent of slavery. Credit Cards are a legal form of usury!

[SpyderTim]

"Just don't use credit. Save up and pay cash. A lot of times, when you have to save up for something it gives you time to ponder whether you really need that item or if your money wouldn't be better off going into a mutual fund for your retirement."

And what is your take on emergencies? Or better yet, what would constitute an emergency for you? Does your philosophy allow for any exceptions?

[tdadams]

And what is your take on emergencies?

Be prepared. Save money. Build wealth. what would constitute an emergency for you?

Would a traffic accident that totalled my car suffice? I had cash in savings to buy a new car.

Does your philosophy allow for any exceptions?

My personal philosophy? Not much. I did take out a 15 year mortgage, but am about to pay it off after 8 years. When you have no debt it's easy to save. When it's easy to save it's easy to invest. When it's easy to invest, it's easy to become wealthy and then you don't need a credit card for "emergencies".

[SpyderTim]

Thanks for a bit of clarification. Aside from your mortgage, have you ever had a loan? I agree with you that bthis whole discussion shouldn't be limited to credit cards. It's much broader, including all personal financing decisions.

How about a college education? How did you finance that? I've got several education loans to pay off, but would like to be able to finance my own children's education without using loans.

[SpyderTim]

After additional clarification, I see where you are coming from.

[SpyderTim]

bump